Ryan rejects council slush funds claim

The Victorian Government is defending accusations from the State Opposition that money for regional councils is little more than a slush fund.

A total of $100 million is being given to country councils to spend on local projects.

An analysis shows three-quarters of that money is going to councils in Coalition electorates and most of the top-funded councils are in Coalition-controlled areas.

However, Nationals' leader Peter Ryan says most of country Victoria is represented by Coalition MPs and Labor is just playing politics.

"The simple fact is, this money, this much needed money, has been distributed to these local government areas on a basis of a formula which is fundamentally around issues of equity," he said.

"The other pity about the complaint by the Labor Party is of course this is a program which by its design is intended to take the pressure off rate increases."

The Opposition spokeswoman for regional and rural development, Jacinta Allan, says the funding allocation is disproportionate.

"It shouldn't matter which part of the state you live in, it shouldn't matter who represents you, what should matter most is that the money is being allocated in a fair and equal manner and that just clearly isn't the case when you look at the analysis of the funding breakdown of this program," she said.